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MU or AMD: Which Is the Better Value Stock Right Now?
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Investors with an interest in Computer - Integrated Systems stocks have likely encountered both Micron (MU - Free Report) and Advanced Micro Devices (AMD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Micron and Advanced Micro Devices are holding a Zacks Rank of #2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
MU currently has a forward P/E ratio of 3.92, while AMD has a forward P/E of 59.03. We also note that MU has a PEG ratio of 0.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMD currently has a PEG ratio of 3.94.
Another notable valuation metric for MU is its P/B ratio of 5.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AMD has a P/B of 10.77.
These are just a few of the metrics contributing to MU's Value grade of A and AMD's Value grade of F.
Both MU and AMD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MU is the superior value option right now.
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MU or AMD: Which Is the Better Value Stock Right Now?
Investors with an interest in Computer - Integrated Systems stocks have likely encountered both Micron (MU - Free Report) and Advanced Micro Devices (AMD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Micron and Advanced Micro Devices are holding a Zacks Rank of #2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
MU currently has a forward P/E ratio of 3.92, while AMD has a forward P/E of 59.03. We also note that MU has a PEG ratio of 0.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AMD currently has a PEG ratio of 3.94.
Another notable valuation metric for MU is its P/B ratio of 5.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AMD has a P/B of 10.77.
These are just a few of the metrics contributing to MU's Value grade of A and AMD's Value grade of F.
Both MU and AMD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MU is the superior value option right now.